1. Beridze Manufacturing expects to produce 2,900 units in January and 3,300 units in February. Beridze budgets $20 per unit for direct materials. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account(all directmaterials) on January 1 is $38,350. Beridze desires the ending balance in Raw Materials Inventory to be 40% of the nextmonth's direct materials needed for production. Desired ending balance for February is $51,700. What is the cost of budgeted purchases of direct materials needed forJanuary?

A. $58,000

B. $46,050

C. $42,850

D. $84,400

2. The budgeted production ofCapricorn, Inc. is 12,000 units per month. Each unit requires 40 minutes of direct labor to complete. The direct labor rate is $80 per hour. Calculate the budgeted cost of direct labor for the month.(Round any intermediate calculations to the nearest cent and your final answer to the nearestdollar.)

A. $24,000

B. $320,000

C. $640,000

D. $960,000